In a major boost to Apple’s India manufacturing strategy, Taiwanese electronics giant Foxconn has commenced production of the upcoming iPhone 17 at its newly inaugurated Bengaluru factory. The facility, located in Devanahalli, has started with small-scale operations but marks a critical milestone in Apple’s shift to expand production outside China.
Foxconn’s new plant in Bengaluru is being established with an investment of $2.8 billion (approximately ₹25,000 crore), making it the company’s second-largest manufacturing unit globally, outside of China.
The Bengaluru unit adds to Foxconn’s already operational Chennai facility, where iPhone 17 production has also begun. With these two hubs, Apple and Foxconn are doubling down on their commitment to transform India into a key global manufacturing base.
Production Challenges and Swift Recovery
The Bengaluru facility faced initial hurdles after hundreds of Chinese engineers unexpectedly returned home, creating a gap in technical expertise. However, sources say Foxconn quickly mobilized experts from Taiwan and other regions to bridge the skill shortage, ensuring that production schedules remained on track.
The incident reflects the challenges of rapidly scaling up high-tech manufacturing in a new geography. Yet, Foxconn’s ability to stabilize operations highlights both its resilience and India’s growing importance in Apple’s supply chain.
Apple’s Ambitious Production Goals for 2025
According to industry insiders, Apple aims to ramp up production significantly in the current fiscal year. The target is to produce 60 million iPhones in 2025, compared to about 35–40 million units in 2024–25.
This aggressive scale-up reflects not only Apple’s increasing reliance on India but also its need to diversify away from China amid geopolitical tensions, rising labor costs, and supply chain risks.
India’s Growing Share in Apple’s Global Strategy
Apple’s India output surged 60% year-on-year, with iPhones worth an estimated $22 billion assembled in the country in FY2024–25. This marks one of the fastest expansions of Apple’s global production footprint.
Notably, Apple CEO Tim Cook highlighted this shift during the company’s July 31 financial results announcement. He revealed that the majority of iPhones sold in the US in June 2025 were made in India. Furthermore, during Apple’s Q2 earnings call, Cook emphasized that all iPhones sold in the US in the June quarter were shipped from India, underscoring the country’s rising prominence in Apple’s supply chain.
Global Demand and Capacity Expansion
According to S&P Global analysis, iPhone sales in the US reached 75.9 million units in 2024. Meanwhile, India exported 3.1 million iPhones in March 2025 alone. To keep up with rising global demand, Apple must either double shipments from India or divert some production originally meant for the domestic market.
Foxconn’s Bengaluru unit is, therefore, not just a backup but a necessary expansion to meet these swelling international orders.
India’s Domestic iPhone Market on the Rise
Apple’s expansion is not just about exports. Within India, iPhone shipments are growing at a record pace:
- Supplies grew 21.5% annually in the first half of 2025, reaching 5.9 million units.
- During the June 2025 quarter, supplies rose 19.7% year-on-year, capturing a 7.5% market share.
- The iPhone 16 was the highest-shipped model during this period, reflecting strong consumer demand in the premium segment.
While Apple still trails Chinese smartphone brands in market share, its rapid growth shows that India is no longer just a manufacturing hub, it is also an expanding consumer market for Apple products.
Despite Apple’s progress, the Indian smartphone market remains dominated by Chinese manufacturers. According to IDC data, Vivo led the Indian smartphone market in Q2 2025 with a 19% share, followed by other Chinese players.
Apple’s 7.5% market share, while smaller, is significant because it dominates the premium smartphone segment. By manufacturing locally, Apple is also better positioned to offer competitive pricing, reduce import duties, and scale its footprint in a market long dominated by budget and mid-range phones.
The commencement of iPhone 17 production at Foxconn’s Bengaluru facility reflects a strategic win on multiple fronts:
- For Apple: Greater supply chain resilience, reduced overdependence on China, and stronger positioning in the world’s fastest-growing smartphone market.
- For India: A step toward becoming a global electronics manufacturing hub, aligning with the government’s “Make in India” initiative.
- For Consumers: Potentially faster product availability, more localized features, and competitive pricing.
Foxconn’s Bengaluru unit starting iPhone 17 production marks a historic moment in India’s tech manufacturing journey. While initial output may be small-scale, the facility is expected to play a pivotal role in Apple’s global expansion strategy.
With rising domestic sales, surging exports, and Apple’s clear commitment, India is fast becoming not just a market but a manufacturing powerhouse for one of the world’s most iconic brands.
As Foxconn ramps up capacity in Bengaluru and Chennai, the iPhone “Made in India” story is set to expand even further redefining global supply chains and strengthening India’s place in the technology world.
